High Court of Bombay at Goa Quashes University Order Revising Pay Scale with Retrospective Effect Without Notice - Violation of Natural Justice in Service Matter. The court held that any order affecting the pay of an employee with retrospective effect must be preceded by a notice and opportunity of hearing.

High Court: Bombay High Court Bench: GOA In Favour of Accused
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Case Note & Summary

The petitioner, Dr. Bugui Dessai, was appointed as a Reader in Inorganic Chemistry at Goa University in June 1987 and confirmed in service in June 1989. His pay was fixed in the scale of Rs.3700-125-4950-150-5700 with effect from 1.1.1986. Subsequently, upon implementation of UGC revised scales, his pay was refixed at Rs.15,360/- in the scale of Rs.12000-420-18300 with effect from 1.1.1996. However, by an order dated 24th April, 2003, respondent No.1 (Goa University) refixed and revised the petitioner's pay scale with retrospective effect, reducing his pay. Another order dated 16th December, 2004 was passed by respondent No.2 (Director of Higher Education). The petitioner challenged these orders by way of a writ petition seeking certiorari. The main legal issue was whether the impugned orders, passed without any notice or opportunity of hearing to the petitioner, were sustainable. The petitioner argued that the orders were passed in violation of principles of natural justice. The respondents contended that the revision was based on policy decisions and that no hearing was required. The court analyzed the facts and held that the orders had serious civil consequences for the petitioner as they reduced his pay with retrospective effect. The court found that no notice or opportunity of hearing was given to the petitioner before passing the impugned orders. Relying on the principle of audi alteram partem, the court held that such orders are violative of natural justice and cannot be sustained. The court quashed the impugned orders dated 24th April, 2003 and 16th December, 2004, and directed the respondents to pass fresh orders after giving the petitioner a reasonable opportunity of hearing. The petition was allowed.

Headnote

A) Service Law - Pay Fixation - Natural Justice - Refixation of pay scale with retrospective effect without notice to employee is violative of principles of natural justice - The University revised the petitioner's pay scale retrospectively without affording any opportunity of hearing - Held that such orders are liable to be quashed (Paras 1-10).

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Issue of Consideration

Whether the impugned orders refixing and revising the pay scale of the petitioner with retrospective effect, passed without giving any notice or opportunity of hearing to the petitioner, are sustainable in law.

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Final Decision

The court allowed the writ petition, quashed the impugned orders dated 24th April, 2003 and 16th December, 2004, and directed the respondents to pass fresh orders after giving the petitioner a reasonable opportunity of hearing.

Law Points

  • Natural justice
  • audi alteram partem
  • retrospective revision of pay scale without notice
  • writ of certiorari
  • service law
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Case Details

2013:BHC-GOA:2565-DB

WRIT PETITION NO. 65/2005

2013-10-10

NARESH H. PATIL, F.M. REIS

2013:BHC-GOA:2565-DB

Mr. V. A. Lawande, Ms. Matshaya Pinto, Ms. A. A. Agni, Mr. A.N.S. Nadkarni, Mr. D. Lawande

Dr. Bugui Dessai

Goa University, Director of Higher Education, State of Goa

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Nature of Litigation

Writ petition under Article 226 of the Constitution of India seeking certiorari to quash orders revising pay scale with retrospective effect.

Remedy Sought

Petitioner sought quashing of orders dated 24th April, 2003 and 16th December, 2004 and restoration of original pay scale.

Filing Reason

The petitioner's pay scale was revised retrospectively without notice or opportunity of hearing, causing financial loss.

Issues

Whether the impugned orders refixing and revising the pay scale of the petitioner with retrospective effect, passed without giving any notice or opportunity of hearing to the petitioner, are sustainable in law.

Submissions/Arguments

Petitioner argued that the orders were passed in violation of principles of natural justice as no notice or hearing was given before revising his pay scale retrospectively. Respondents contended that the revision was based on policy decisions and that no hearing was required.

Ratio Decidendi

Any order affecting the pay of an employee with retrospective effect, which has serious civil consequences, must be passed only after giving the employee a notice and an opportunity of hearing. Failure to do so violates the principles of natural justice and renders the order liable to be quashed.

Judgment Excerpts

The petitioner prays for a writ of certiorari to quash and set aside the impugned order dated 24th April, 2003 passed by respondent no.1 refixing and revising the scale granted to the petitioner with retrospective effect and the order dated 16th December, 2004 passed by respondent No.2.

Procedural History

The petitioner filed a writ petition in the High Court of Bombay at Goa challenging two orders: one dated 24th April, 2003 by Goa University revising his pay scale retrospectively, and another dated 16th December, 2004 by the Director of Higher Education. The petition was reserved on 3rd October, 2013 and pronounced on 10th October, 2013.

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